On the mend: Disposable income increases in Michigan will offset declining insurance coverage

The Pharmacies and Drug Stores industry in Michigan retails various prescription and over-the-counter medications, health and beauty items and grocery items, along with other goods and services. This industry does not include mail-order retailers, hospitals, clinics, warehouse stores or big-box retailers with ancillary pharmacy services. Over the five years to 2018, the industry experienced healthy growth as the number of people with private health insurance in Michigan steady increased and per capita disposable income levels in the state grew. As a result, more individuals could afford regular visits to the doctor and prescription medications comfortably. Thus, over the five years to 2018, revenue is expected to increase an annualized 1.7% to $8.4.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
1.7%
Forecast Growth 18-23
Profit
Employment
22,196
Businesses
2,026

Industry Threats & Opportunities

  • Big-box retailers and warehouse stores, which have ancillary pharmacy services, proved to be significant threats

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    Industry Report - Industry Investment Chapter

    ***This section is not used for US State reports***...

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    Additional Insights for the Pharmacies & Drug Stores in Michigan Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmacies & Drug Stores in Michigan Industry are

  • Ability to control stock on hand
  • Participation in pharmacy benefit management (PBM) networks
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income in Michigan and Number of people with private health insurance in Michigan in the Pharmacies & Drug Stores in Michigan industry impact industry performance..

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    What's in this report

    What is the Pharmacies & Drug Stores in Michigan Industry?

    Pharmacies and drug stores retail a range of prescription and over-the-counter medications, health and beauty items, toiletries and consumable goods directly to consumers on a walk-in basis. Industry companies may also provide basic health and photo-processing services. The industry includes retail stores with a pharmacy but excludes mail-order retailers, hospitals and clinics.

    Industry Products
  • Branded prescription drugs
  • Generic drugs
  • Nonprescription medicines
  • Personal health supplies
  • Groceries and food items
  • Vitamins, minerals and dietary supplements
  • Cosmetics
  • Industry Activities
  • Preparing and selling prescription and nonprescription drugs and medicines
  • Retailing basic consumable goods
  • Selling other miscellaneous items, such as candy, cosmetics, magazines and light refreshments
  • Advising customers on the use of both prescription and over-the-counter drugs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income in Michigan
  • Number of people with private health insurance in Michigan
  • External competition for the Pharmacies and Drug Stores industry
  • Number of adults aged 65 and older in Michigan
  • Federal funding for Medicare and Medicaid

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmacies & Drug Stores in Michigan Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Camera & Film Wholesaling
  • Chocolate Production
  • Cosmetic & Beauty Products Manufacturing
  • Drug, Cosmetic & Toiletry Wholesaling
  • Generic Pharmaceutical Manufacturing

  • Products & Services
  • Branded prescription drugs
  • Generic drugs
  • Other
  • Nonprescription medicines
  • Personal health supplies
  • Groceries and food items
  • Cosmetics
  • Vitamins, minerals and dietary supplements
  • Chart: Pharmacies & Drug Stores in Michigan Industry Products and Services Segmentation

  • Major Markets
  • Consumers aged 45 to 64
  • Consumers aged 18 to 44 years
  • Consumers aged 65 and older
  • Consumers aged 17 and younger
  • Chart: Major Market Segmentation for the Pharmacies & Drug Stores in Michigan Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Pharmacies & Drug Stores in Michigan

  • Basis of Competition
    Barriers to Entry
    CVS Health Corporation, Walgreens Boots Alliance Inc., Rite Aid Corporation, HomeTown Pharmacy,
  • Table: CVS Health Corporation - financial performance
  • Table: Walgreens Boots Alliance Inc. - financial performance
  • Table: Rite Aid Corporation - financial performance
  • Table: HomeTown Pharmacy - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmacies & Drug Stores in Michigan Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pharmacies & Drug Stores in Michigan Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total health expenditure (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blockbuster Drug
  • A drug product that generates annual sales in excess of $1.0 billion.
  • Formulary
  • A list of medicines that are covered by a health insurance plan and always meet Medicare's requirements.
  • Front-End Sales
  • Sales of products from the front of the store or products sold separately from the pharmacy.
  • Over-The-Counter (Otc) Medications
  • Medicine that can be purchased without a prescription.
  • Pharmacy Benefit Manager (Pbm)
  • A third-party administrator of prescription drug programs.
  • Prescription Drug
  • A licensed medicine that can only be obtained with a doctor's approval.
  • What Our Customers Say

    Why buy this report?

    The Pharmacies & Drug Stores in Michigan industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Pharmacies & Drug Stores in Michigan:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pharmacies & Drug Stores in Michigan market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pharmacies & Drug Stores in Michigan, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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